What a ride it's been for ASML
Results for the first quarter of this year were something of a mixed bag. Revenue was down about 8% from last year (with system revenue down more than 12%), but virtually the sole culprit was a delay in shipping two machines that were subsequently shipped in April. And so while this delay led in part to a 20% drop in earnings and a miss of the average estimate, it wasn't as if ASML didn't have enough business to make the quarter.
On a more positive note, the bookings and backlog story is stronger. The total backlog climbed by one unit from a year ago and by 11 from the immediately prior quarter. Bookings were also meaningfully higher on an annual and sequential basis.
It seems that the company's immersion tools are finally drawing some notice from customers in the memory space. That's significant, as the company seems to have a pretty healthy lead on rival Nikon. Of course, the memory market can be volatile, and orders today can turn into cancellations tomorrow if overall industry conditions worsen fast enough.
The good news/bad news of this story is that ASML is essentially a one-trick pony. It's clearly the market leader in lithography, ahead of Nikon and Canon
For now, I'm inclined to believe that ASML really is poised to see an upswing in orders. And while the semiconductor industry may now be older and wiser with respect to its capital investment behavior, there's still an ongoing need for equipment. Given that factories like Taiwan Semiconductor
For more chipper Foolishness:
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).